FedEx Advancement fee

Satjohn

Wonder if anyone can advise please?

I purchased a smart phone case last year in the uk. After 11 months the waterproof seal had failed and as it was still under warranty I contacted the company to arrange a replacement. It turned out the company was in the USA but agreed that a replacement could be sent out free of charge and arranged to do so with FedEx.

The delivery was very quick but shortly afterwards I received an invoice from FedEx for two items?
1. £5.39 in VAT ( for a free replacement item ??? )
2. £12.00 Advancement fee??

Surely there should be no duty on this? Also I don't have any contract or for that matter any arrangement with FedEx to arrange this delivery so how can they legally claim this fee from me.
I didn't even sign for the delivery as I wasn't in so they left it with a neighbour.

I have spoken to FedEx and they say it is legitimate tax and to speak to the VAT office if I need clarification and their charge is a standard charge?

Hope someone knows the ins and outs? Not a massive bill but all the same to have to pay for replacement faulty goods seems wrong?

Kind regards
John

wealdroam

Vat is levied on the total of the value of the goods and the shipping.

Looks like goods plus shipping was £26.95.

What is the value on the customs declaration?

Is the shipping charge shown anywhere?

The 'advancement fee' is the charge Fedex levy for clearing your goods through customs.

As the importer, your are responsible for these costs.

It is not unknown for £s and $s to be muddled, leading to an 'enhanced' VAT bill.
E.g. the shipper values the goods at $15 but HMRC (or their agent) reads that as £15.

London50

Although this is a very old thread {below} it MAY explain some of the situation you are in as the way I read it it does seem to be some of the things you have although it was not either faulty or a free replacement. I would see if you can find the T & C's of the USA company to get full info.
I am no expert so I could be totally wrong but it is the way I read it.

http://www.ukbusinessforums.co.uk/threads/is-this-a-legal-invoice-from-fedex.245684/

Satjohn

Thanks for the replies.

Below is listed all the information from the shipping company. It states FedEx as the courier but there is no mention of taxes or charges to myself.
It does list the item as $0


Warranty Order Shipping Confirmation


Your warranty is ready to ship

Great news, your LifeProof order is ready to ship.

Your order will be shipped via FedEx International Economy®, and the tracking number is:

If you have any questions, please contact customer service and provide them with order number

Thanks again for choosing LifeProof.

What you ordered

Product Qty Price
APPLE IPHONE 5S FRE DARK BLUE/BLUEPRINT EN/FR
Item No: 2115-05

1

USD0.00

Where it's going to


Important information

How long does it take to get to me?
Once an order has been submitted, it is generally dispatched within 24 hours. Delivery takes approx. 5 - 7 working days.

FedEx Shipping
Please note the following FedEx delivery requirements: A signature IS required for residential deliveries. A signature IS required for deliveries to apartment complexes and commercial addresses (they cannot leave your package without a signature or they will become liable). If you are not available to sign and FedEx has already attempted delivery, you have a few options. You can either sign the yellow slip the driver leaves on your door telling him to leave the package at the manager's office or with a neighbor who can sign, or you can call FedEx with your tracking # and give them authorization to deliver to another address. For FedEx shipments, please allow 3-5 business days (unless upgraded shipping options are chosen).

FedEx SmartPost® Shipping
By utilizing the United States Postal Service (USPS) for final delivery, FedEx SmartPost reaches every U.S. address within 7-10 business days. Please note: Shipments via FedEx SmartPost to Alaska and Hawaii will take anywhere from 14-18 business days.

Shipping to an APO Address
We do ship to military addresses via FedEx SmartPost. Please allow 14-18 business days for delivery.

foxtrotoscar_2

I suggest you edit out your personal details.

LilElvis

You might want to edit your post to remove personal information.

LilElvis

What does it actually say on the outer label? Does it say warranty replacement? What value is on the label?

Satjohn

Thanks - removed

What label ? If you mean the package it was posted in ? I don't know as it was thrown away once opened.

The FedEx invoice has no details of of what the item was or is.

George_Michael

I'm fairly sure that VAT is charged on warranty replacements sent from outside of the EU but not on goods that are sent for repair under warranty and then returned afterwards. (provided proof of the warranty can be given to HMRC).

The declared value of £ zero isn't correct as although it wasn't being paid for, it still has a commercial value for import purposes.

Satjohn

I understand it has a value (£69 ) but I don't see why I am supposed to pay for them replacing a faulty product under warranty and then FedEx adding their fee in top too. I have emailed Lifeproof tonight to ask them the same question?

visidigi

Satjohn wrote: »

Thanks - removed

What label ? If you mean the package it was posted in ? I don't know as it was thrown away once opened.

The FedEx invoice has no details of of what the item was or is.

The invoice must have the information on to be able to be cleared. Life proof should have declared it as a warranty replacement - they also should have put nominal value on it, representative of manufacturing cost for customs clearance purposes.

The tax an be avoided on the warranty replacement if the original is returned to the manufacturer and the appropriate return manufacturer paperwork completed.

Satjohn wrote: »

I understand it has a value (£69 ) but I don't see why I am supposed to pay for them replacing a faulty product under warranty and then FedEx adding their fee in top too. I have emailed Lifeproof tonight to ask them the same question?

FedEx is asking for it from you because Lifeproof said on the shipment that you would be responsible. There is a question during labeling as to who will pay to transport the good and who will pay for the duties and taxes owed.

Lifeproof said you, FedEx is doing as its told.